Morning Outlook 2nd November, 2022

NIFTY:

The NIFTY opened at 18130.70 with a gap up of 118 points. The index continued moving higher from the opening tick but faced resistance below 18200. The index recorded its intraday high at 18175.80 and started drifting downwards. Prices came below the early morning low and then bounced up from there. The index recorded its intraday low at 18060.15, made some recovery towards the end of today’s trading session, and finally closed at 18145.40 near its opening tick with a gain of 133.20 points or 0.74% up. All the sectoral indices have closed higher today except MEDIA and BANK. METAL and PHARMA led the bulls today by closing over 2% gains followed by IT which gained nearly 2%. It was a volatile day today where prices have rallied first then saw a sharp dip and then recovered afterward to finally close above 18100. The short-term trend is up and very strong. The NIFTY has been closing higher for four consecutive trading days. The index is now heading towards its lifetime highs around 18600. Support is now visible around 18000 and we should look for buying opportunities as far as prices are trading above this level.

BANK NIFTY:

The BANK NIFTY opened at 41552.40 with a gap up of 238 points. The index initially moved higher but soon faces resistance and started drifting downwards after recording its intraday high at 41677.25. Prices have seen a sharp intraday fall, erased all the gains, and come into negative territory. The index spends its second half moving sideways, recorded its intraday low at 41188.55, and finally closed at 41268.60 with a loss of 46 points. PSU BANKS have underperformed today by closing lower 0.67% while PVT BANKS have also seen a decline today but closed with a loss of just 0.15%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while AXIS BANK contributed the lowest. We have suggested a trade in the direction of a breakout which was to buy above 41500 or sell short below 40900 with a stop of 300 points and a target of 800 points. Prices opened above 41500 and recorded its first 15 minutes high at 41548. Or long traded executed when this high gets penetrated. The index continued moving inside a narrow range with 40800 support and 41700 resistance for the past six trading days. A breakout from this range may give us a directional move. Look for a buying opportunity on a breakout above 41700 or a shorting opportunity on a breakdown below 40800. In case of a gap beyond these levels follow the first 15 minutes rule. Keep a stop of 300 points and a target of 800 points

 

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: FX Reserves, USD on 4th November, 2022 INR: CPI (YoY) (Oct) on 11th November, 2022	USD: ADP Nonfarm Employment Change (Oct) on 2nd November, 2022 USD: Crude Oil Inventories on 2nd November, 2022

NEWS UPDATES

• Benchmark indices closed higher for the fourth consecutive session on November 1 with Nifty above 18,100.At Close, the Sensex was up 374.76 points or 0.62% at 61,121.35, and the Nifty was up 133.20 points or 0.74% at 18,145.40. About 1765 shares have advanced, 1579 shares declined, and 129 shares are unchanged.
• India’s monthly goods and services tax revenue collected in October crossed Rs 1.5 lakh, the second-highest on record. GST in October, collected for September, stood at Rs 1,51,718 crore, according to a statement released by the Ministry of Finance. That compares with Rs 1,47,686 crore in September (collected for August)
• Tata Group is planning to multiply the number of employees at its electronics factory in southern India that makes iPhone components, adding tens of thousands of workers as part of a push to win more business from Apple Inc.
• Online beauty and fashion retailer Nykaa’s second-quarter profit rose after falling for the last two consecutive quarters, and margins improved despite higher expenses. The bottom line, however, missed estimates.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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